PVH (PVH 98.22, +7.37) has jumped 8.1% in pre-market after beating estimates and guiding ahead of market expectations. In addition, the company's Board of Directors authorized a $750 million boost to its share buyback program, which has been extended to June 2020.
The company reported above-consensus earnings of $1.23 per share on a 0.2% year-over-year downtick in revenue to $2.11 billion, which was just ahead of expectations.
All in all, the results from PVH were only a bit better than the market had expected, but when put against the backdrop of a tough retail environment, PVH's slim beat looked good by comparison.
Calvin Klein revenue fell 1.0% to $795 million. This included a $25 million reduction that resulted from a November 2016 deconsolidation of the company's subsidiary that operated and managed the company's business in Mexico. Calvin Klein international revenue rose 11.0% to $385 million with comparable store sales growing 6.0%. The company identified Europe and China as two locales that drove the increase. North America comparable store sales declined 2.0%.
Tommy Hilfigher revenue rose 3.0% to $932 million. International revenue rose 10.0% to $513 million due to strong performance in Europe and the April 2016 acquisition of the 55.0% interest in the company's former joint Tommy Hilfigher venture in China. International comparable store sales grew 7.0%. North America revenue declined 4.0% to $419 million with North America comparable store sales falling 7.0%. The company licensed its womenswear wholesale business to G-III Apparel Group, which contributed to the decline in North America revenue.
Heritage Brands revenue declined 5.0% to $381 million due to the discontinuation of some licensed product lines in the dress furnishing business. This resulted from streamlining that was undertaken in 2015. Comparable store sales were unchanged year-over-year.
Looking ahead, the company issued above-consensus guidance for the first quarter and full year. First quarter earnings are expected between $1.58 and $1.60 per share while revenue is expected to grow about 2.0% to $1.96 billion. This is ahead of market expectations. For the full year, the company expects to report above-consensus earnings between $7.30 and $7.40 per share on 2.0% revenue growth to $8.37 billion.